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The answer to that is a resounding, "Yes. Before you dive in, there are some mindset principles that you need to adhere to.

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The Contrarian Way—Blood in the Streets Even the most unadventurous investor knows that there comes a time when you must buy, not because everyone is getting in on a good thing but because everyone is getting out. Just as great athletes go through slumps when many fans turn their backs, the stock prices of otherwise great companies occasionally go through slumps, which accelerate as fickle investors bail out. As Baron Rothschild supposedly once said, smart investors "buy when there is blood in the streets, even if the blood is their own. The point is that there are times when good investments become oversold, which present a buying opportunity for investors who have done their homework.

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Joshua Kennon Updated January 27, Do you need to build a portfolio that will generate cash? Are you more concerned with paying your bills and having enough income than growing richer?

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